Working Paper: NBER ID: w18492
Authors: Hunt Allcott; Todd Rogers
Abstract: We document three remarkable features of the Opower program, in which social comparison- based home energy reports are repeatedly mailed to more than six million households nationwide. First, initial reports cause high-frequency "action and backsliding," but these cycles attenuate over time. Second, if reports are discontinued after two years, effects are relatively persistent, decaying at 10-20 percent per year. Third, consumers are slow to habituate: they continue to respond to repeated treatment even after two years. We show that the previous conservative assumptions about post-intervention persistence had dramatically understated cost effectiveness and illustrate how empirical estimates can optimize program design.
Keywords: No keywords provided
JEL Codes: D03; D11; L97; Q41
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| initial reports sent to households (R20) | high-frequency actions to conserve energy (Q41) |
| initial reports sent to households (R20) | energy conservation actions (Q48) |
| discontinuation of reports after two years (C42) | persistent effects (C41) |
| sustained behavioral interventions (C92) | consumer awareness and action towards energy savings (Q41) |
| slow habituation to reports (C92) | continued response to repeated treatments (C22) |